We wrote recently that Venture Capitalists are hot for video startups. Since then, two companies we highlighted hit major milestones: SocialCam was acquired for 60M and Tout raised 13M.
SocialCam announced a few weeks ago that Autodesk acquired the company for 60M.
Does 60 million sound like a small price, after Facebook’s acquisition of Instagram for 1 billion? Let’s put it in perspective.
SocialCam was just getting started when I met with them late last year. And get this: SocialCam still has just 3 employees! So that has to set some kind of record …. exiting with only 3 full time people – a CEO and 2 engineers. At a 20M in valuation per employee, with less than a year of operation!
Why sell now?: Keep in mind that Justin Kan of Justin.TV acheived a huge payout for SocialCam while continuing to operate his main venture, Justin.TV. SocialCam was an internal startup of Justin.TV. So Justin Kan, Michael Seibel (CEO of SocialCam) and a their two engineering employees Guillaume Luccisano and Ammon Bartram just scooped 60M off the top of the frothy video app markets. Nice!
Autodesk is a 2 billion dollar corporation that makes professional entertainment and design software. Autodesk also has consumer video products, which will be greatly strengthened by SocialCam’s massive user base.
Tout Raises Series B
Tout announced a remarkable investment round led by World Wrestling Entertainment (WWE).
Tout pulled in 13.4 million from the WWE and existing Tout investors. What is remarkable is that the WWE structured a partnership around its equity investment that will propel Tout to new levels of success and visibility.
Tout will be featured as part of the 1000th RAW TV show event next Monday (July 23rd). “Tout Tuesdays” will begin next week as well. Fans and WWE stars will exchange 15 second video messages via the Tout platform each Tuesday, following the weekly broadcast of WWE RAW shows Monday on USA Network.
WWE is one of the most successful transmedia companies in entertainment, building its flagship wrestling events into a media empire spanning TV, consumer products, film, music and online properties. WWE is also social savvy, picking Twitter, Instagram, Shazam and other successful social platforms to partner with early.
Watch for Tout to grab this opportunity and run with it. Tout added 6M new users last month, and I expect them to at least double those user acquisitions numbers this month with the WWE partnership.
Stay tuned for more video app excitement…